NAME: AAMODINI KATOCH

ROLL NO: OO13-PSY-22

SEMESTER: III
COURSE CODE: PSPYTE-303
COURSE TITLE: ORGANISATIONAL BEHAVIOUR

INTRODUCTION: Organisational design is the process of

coordinating the structural elements of organisations in the most
appropriate manner. Just as a house is designed in a particular
fashion by combining its structural elements in various ways, so
too can an organisation be designed by combining its basic
elements in different ways. This is no easy task. Even the most
precisely designed organisations face the need to change at one
time or another, adjusting to the realities of technological changes,
political pressures, accidents, and so on. Organisational designs
also might be changed intentionally, as may occur when
companies enter new businesses, when they merge with others, or
simply just because they seek a higher level of operating
efficiency.
In recent decades, concerns about waste and inefficiency, have
driven many efforts at redesigning organisations, especially
among U.S. government agencies, where the need to streamline
has been considerable.

LATEST TRENDS IN THE ORGANISATIONAL DESIGNS:

Organisational design is undergoing significant transformations
driven by dynamic shifts in the business landscape. A prevalent
trend is the embrace of hybrid work models, reflecting a
recognition of the lasting impact of remote and flexible work
arrangements. This evolution demands organisational structures
that seamlessly integrate disturbed teams while prioritising
employee, well-being and engagement.
Inclusivity and diversity have become focal points, prompting
companies to re-evaluate and adapt their designs to foster equality
at all levels. Leadership models are also evolving, with a move
towards collaborative and adaptive approaches that empower
teams. The relentless pace of digital transformation continues to
influence organisational structures, necessitating, a keen focus on
eligibility and resilience. Additionally, a holistic approach to
employee engagement, encompassing work-life balance, purpose,
and continuous learning, is shaping modern organisational design.
Sustainability considerations, driven by ESG principles, are
further impacting structures as companies integrate environmental
and societal goals and their organisational DNA. These trends
collectively reflect a strategic response to evolving expectations of
a dynamic workplace and rapidly changing global business
environment.
Following are two latest trends in organisational designs:

1. NETWORK STRUCTURE
The network structure represents a contemporary trend in
organisational design that departs from traditional hierarchal
models, emphasising flexibility, collaboration, and
decentralisation. In a network structure, the organisation is
conceptualised as a network of interconnected individuals, teams,
or units, fostering a more agile and responsive environment. Key
features include:
I. Decentralisation: decision making authority is distributed
across various nodes within the organisation rather than
concentrated at the top. This decentralisation allows for
quicker response to changing conditions, as decision makers
are closer to the ground.
II. Collaboration: unlike strict hierarchies network structures
encourage cross functional collaboration. Teams and
individuals work together across departments, promoting a
culture of shared knowledge and innovation.
III. Flexibility: the network structure is inherently adaptable. It
can swiftly respond to market shifts, technological,
advancements, and other external factors due to the
decentralised and collaborative nature.
IV. Information flow: communication flows, horizontally as well
as vertically, reducing bureaucratic bottlenecks. This ensures
that the information is shared efficiently, contributing to faster
decision making processes.
V. Project based teams: work is often organised around projects
or tasks, and teams are formed based on the expertise needed
for each project. This approach enhances efficiency and
allows organisations to assemble dynamic teams for diverse
challenges.
VI. Technology integration: network structures leverage
technology to facilitate communication and collaboration.
Digital tools and platforms play a crucial role in connecting
disposed teams, enabling seamless coordination.

EXAMPLES:

1. Google:
• Model: Google is known for its matrix like organisational
structure, emphasising, cross-functional collaboration and
project based teams.
• Example: in Google, small, autonomous teams, often referred as
squads, are formed to work on specific projects or features. This
foster innovation, agility, and a sense of ownership among team
members.

2. Spotify:
• Model: Spotify has adopted a network structure based on the
squad model, which encourages a dynamic and collaborative
approach to work.
• Example: squads at Spotify, are self organising teams
responsible for specific aspects of the product. They operate
with a high degree of autonomy, allowing for a quicker decision
making and adaptability to changing market demands.

2. VIRTUAL ORGANISATIONS
The concept of "virtual organisations" continues to be a significant
trend in organisational design, driven by technological
advancements and changes in work preferences. A virtual
organisation is characterised by its reliance on digital
communication and collaboration tools, allowing employees to
work remotely from various locations. Key aspects of virtual
organisations:

I. Remote Work Emphasis:

• Definition: A virtual organisation places a strong emphasis on

remote work, enabling employees to carry out their
responsibilities from different geographical locations.
• Technological Infrastructure: Virtual organisations leverage a
robust technological infrastructure, including video
conferencing, project management tools, and cloud-based
systems, to facilitate remote collaboration.
II. Flexibility and Work-Life Balance:
• Adaptive Work Arrangements: Virtual organisations offer
flexible work arrangements, allowing employees to choose
when and where they work. This flexibility promotes a better
work-life balance and accommodates individual preferences.
III. Digital Communication Tools:
• Communication Platforms: Virtual organisations heavily rely
on digital communication tools such as video conferencing,
instant messaging, and collaborative software to ensure
effective and real-time interaction among team members.
 • Virtual Meetings: Regular virtual meetings replace traditional
face-to-face interactions, fostering a sense of connectivity and
collaboration.
IV. Decentralised Decision-Making:
• Empowerment: In a virtual organisation, decision-making
authority is often decentralised. Teams or individuals may be
empowered to make decisions autonomously, contributing to a
more agile and responsive organisational structure.
V. Global Talent Pool:
• Access to Diverse Talent: Virtual organisations have the
advantage of accessing a global talent pool. They can assemble
teams with diverse skills and perspectives, transcending
geographical boundaries.
• Cultural Diversity: The inclusion of team members from
different cultural backgrounds enhances creativity and
innovation within virtual organisations.
VI. Results-Oriented Performance Culture:
• Outcome Measurement: Virtual organisations tend to focus
on outcomes and results rather than traditional input-based
metrics. Performance is evaluated based on the quality of work
delivered and achieved objectives.
VII. Technological Security and Privacy:
• Security Measures: Given the reliance on digital platforms,
virtual organisations prioritise robust cybersecurity measures to
safeguard sensitive information and ensure data privacy.
VIII. Cost Savings:
• Reduced Overheads: By eliminating the need for physical
office spaces, virtual organisations can achieve significant cost
savings related to office rent, utilities, and other overhead
expenses.
IX. Continuous Learning and Development:
• Adaptability: Virtual organisations emphasise continuous
learning and development to ensure that employees stay
 updated on technological advancements and adapt to evolving
work practices.
X. Cultural Challenges and Employee Engagement:
• Building Culture: Maintaining a cohesive organisational
culture in a virtual setting can be a challenge. Virtual
organisations need strategies to foster team spirit,
collaboration, and employee engagement.

EXAMPLES:

1. Upwork:
• Industry: Freelance Talent Platform.
• Virtual Structure: Upwork, a leading freelancing platform,
operates as a virtual organisation connecting businesses with
freelancers globally. The platform relies on virtual collaboration
tools for communication, project management, and talent
acquisition.

2. GitLab:
• Industry: Technology (DevOps).
• Virtual Structure: GitLab is known for its all-remote workforce.
The company is built on the principles of transparency and
asynchronous communication, utilising various online platforms
for collaboration, version control, and project management.